Google is reorganized and became a subsidiary of holding company named “Alphabet” – ABC Color

SAN FRANCISCO. US Internet giant Google announced Monday a corporate restructuring to create a new company called Alphabet in which the search engine will be one of its units.

Alphabet is the umbrella company that includes its technology center X Lab, Google investment unit Ventura, operations in science and health and Google search unit said co-founder of Google Larry Page in an unexpected announcement.

“Our company works well now but we think we can make it clearer and more accountable. Then create a new company called Alphabet “Page said, and then talk about a” new Google “.

Alphabet replace Google on Wall Street and will be led by Page and Sergey Brin , co-founders of the Internet group. The new branch will have to Page and Brin CEO and president, while Eric Schmidt is executive chairman of the board.

Sundar Pichai until now vice president in charge of Google’s products, will assume the general direction of the search engine.

This renovated, relieved foreign projects, Google will retain the activities of search, advertising, mapping applications, the subsidiary YouTube online video and mobile operating system Android.

Google X, which works with research in autonomous vehicles and airships Internet will be separated from the unit, as the project delivery with drones, Wing and Internet high-speed fiber Google, among others.

“We believe this will allow us to better management, to be able to work in independent activities that are not related to each other,” Page said.

The restructuring comes amid concerns that the technology sector domination would be exercising as the spectrum of business and areas of the company expands.

Google has long been the leader among Internet search engines and advertising has become linked to these searches in a highly lucrative business. But its shares have faced problems since reaching a record high in 2014 in the bag and has shown little in other areas such as autonomous vehicles, virtual goggles Google Glass, the Google TV and Google+ network, among others.

“This is a wise move on his part,” said Bob O’Donnell , who heads the consulting TECHnalysis Research. “There have been many questions about its ability to grow out of the internet search. The search engine has it been their source of money for a long time, “said

.

The new structure implies that each of the projects, including those” craziest “could rely on themselves and generate results , O’Donnell said.

“There is a feeling that they needed to be more serious about these issues,” he told AFP.

For his part, Trip Chowdhry , an analyst with Global Equities Research, told AFP that this change of strategy “is very positive because it creates transparency in the activity of Google”.